The Rayner Verdict

The resignation of Angela Rayner is a symptom of a far greater disease in the UK property market, a leading industry expert has warned. The verdict from the Prime Minister’s ethics adviser, Sir Laurie Magnus, coupled with a stark warning from The Law Society, has exposed a systemic "advice gap" that places thousands of conveyancers and their clients at immediate risk of professional negligence claims and significant financial penalties.

Stuart Wood, founder of Stamp, the UK's leading SDLT risk-management platform, says the focus must now shift from the political drama to the professional liability crisis it has uncorked.

"The adviser’s letter from Sir Laurie Magnus was the final nail in the coffin for business as usual," says Stuart Wood. "He confirmed Angela Rayner breached the code not through malice, but because she fell into the classic industry trap: she received non-specialist advice that came with a caution to 'seek expert tax advice,' and failed to act on it. Days later, The Law Society warned the entire profession about the dangers of negligence claims. The industry is now on high alert."

Here, Stuart Wood answers the key questions every conveyancer, broker, and homebuyer should be asking.

Why is this more than just a political story?

Because the letter from Sir Laurie Magnus officially diagnosed a broken process. It confirmed a high-profile individual, acting in "good faith," still ended up with a breach of the Ministerial Code. This proves that a client's good intentions are no defence against a complex tax system and a flawed professional process. It moves the conversation from personal ethics to systemic risk, which affects every single property transaction in the country. 

I keep hearing about the "Advice Gap." What is it and why is it so dangerous?

The "advice gap" is the dangerous space between what a client thinks they are receiving (comprehensive tax advice) and what a conveyancer is qualified and insured to provide (legal title transfer and a tax calculation based on client-provided information). The client, who isn't a tax expert, is legally responsible for the final bill. The conveyancer, who isn't a tax expert, facilitates the submission. When a complex case arises, this gap becomes a vacuum of responsibility, and as we've seen, the consequences can be catastrophic for all involved.

The Law Society has now issued a warning. What does this mean for conveyancers?

It means the risk is now official and undeniable. The Law Society's warning is a clear signal that firms must review their processes immediately. Relying on a disclaimer buried in a client care letter is no longer a sufficient defence. Professional Indemnity (PI) insurers will be scrutinising firms' procedures at renewal, and those who cannot demonstrate a robust, auditable system for identifying and handling complex SDLT cases will likely face higher premiums or difficulty obtaining cover. It marks the end of relying on "intuition" to spot red flags.

But the conveyancer used the HMRC calculator. Isn't that a valid defence?

Absolutely not. HMRC is explicit that its online calculator is a "guide" and not a definitive tax tool. It is designed for simple, vanilla transactions and lacks the diagnostic intelligence to probe for complexities like family trusts, connected parties, or the 49+ reliefs and exemptions that exist. Using the HMRC calculator for a non-standard transaction and blaming the outcome on client-provided information is a strategy that has been proven to fail.

How could this entire situation have been prevented?

This was 100% preventable with a modern, risk-based approach. The process failed because it relied on manual intervention and subjective judgement. A system like Stamp would have prevented this at the first step by:

• Performing an Intelligent Diagnosis: Instead of a basic calculation, Stamp's platform asks the probing, logical questions required to uncover the transaction's true nature. The existence of a trust for a minor child would have been identified instantly.

• Automating the Risk Flag: The transaction would have been immediately flagged as 'Non-Standard' and complex, removing any reliance on the conveyancer's "intuition." It creates an unmissable stop-and-think moment.

• Creating a Defensible Audit Trail: A comprehensive PDF report is generated, detailing all the information, the risk flag, and the warnings provided. This is a crucial piece of evidence for compliance and PI defence, proving the firm acted responsibly.

• Providing a Safe, Compliant Referral: Most importantly, Stamp closes the "advice gap." It provides a clear, one-click pathway for the client to be referred to a panel of vetted, independent tax specialists for the expert advice the adviser's letter confirmed was essential.

This isn't about better calculation; it's about a better, safer process. It replaces ambiguity and risk with clarity and compliance, protecting both the professional and their client.

A Call to Action for the Industry

"We are constantly evolving our platform to meet these challenges head-on," adds Stuart Wood. "A new version of Stamp is already in development to provide even greater protection and clarity for professionals. We encourage all property professionals to stay informed by keeping an eye on developments at both stamp.expert and stampcheck.co.uk for the latest tools and guidance."

About Stamp:

Stamp is the UK's leading SDLT risk management and compliance platform, launched in 2019 and designed for property and finance professionals. It replaces basic calculators with an intelligent diagnostic system that identifies risk, creates a defensible audit trail, and provides a compliant pathway to specialist advice, closing the dangerous "advice gap."

Stuart Wood

Founder